Transitioning to Alternative Platforms
As Binance leaves the Russian cryptocurrency market, Russian traders are moving to other platforms for their trading activities. However, the company that acquired Binance’s Russian business, CommEX, is facing challenges in attracting these users. This migration has also led to a decrease in peer-to-peer (P2P) trading activity, with a decline of 10% to 30%, according to Satoshkin CEO Dmitry Stepanin.
P2P Activities Decline
Binance’s exit from the Russian market has caused a surge in clients searching for alternative platforms. CommEX was expected to attract around one million clients after taking over Binance’s operations, but it is not their preferred choice.
Dmitry Stepanin reports a noticeable decrease in P2P activities, with figures falling by 10% to 30%. In early 2023, Binance had approximately 7,700 daily ruble P2P transaction ads. This number dropped to 6,300 by mid-year and further decreased to 3,400 by September. As of October 3rd, there was no data on ruble transactions on Binance.
Exploring Alternatives
Crypto traders are turning to platforms like ByBit due to active marketing campaigns by these exchanges. Huobi, Bitget, Kucoin, and Gate.io have seen increased user activity as they offer similar features to Binance.
Huobi’s active advertisements grew from 3,900 to 4,500 between the first half of the year and October. ByBit exceeded 2,700 advertisements in October compared to 1,800 in the first half.
Russian Crypto Enthusiasts Turn to Hong Kong
Many crypto enthusiasts from Russia and Ukraine are seeking to protect their digital assets in Hong Kong. CryptoHK founder Merton Lam reveals that crypto has become a significant part of high-net-worth individuals’ investment portfolios in the region.
Reasons for Binance’s Departure
Binance’s exit from Russia is mainly due to pressure from American regulators and accusations of money laundering and sanctions evasion. Binance had also imposed restrictions on Russian users, including limits on wallet holdings and currency purchases on their P2P platform.
Sergei Mendeleev, CEO of InDeFi Smart Bank, clarifies that Binance is not completely leaving the market but rebranding to improve operational efficiency in Russia. There is no official information or mention of Russian ownership of the CommEX project on Binance’s website.
Hot Take: Binance’s Exit Sparks Shift in Russian Crypto Market
The departure of Binance from the Russian cryptocurrency market has led to a significant shift in user behavior. Traders are actively exploring alternative platforms and migrating their activities away from Binance. This transition has resulted in a decline in peer-to-peer trading, with traders seeking out other options that offer similar features and benefits.
The situation has also prompted Russian crypto enthusiasts to consider protecting their digital assets by turning to Hong Kong as a refuge. The reasons behind Binance’s exit are attributed to regulatory pressure and allegations of misconduct. Despite the changes, it appears that Binance will continue to operate in Russia under a new brand name.
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